Switching banks to become easy with the new law introduced by congress

Introduction of new fees and the change in behavior in most of the leading banks led to a number of people switching banks as they were fed up with the ordeal they had to face in these banks. However, a certain section of people decided to remain with their banks despite all of this because they did not want to go through the hassles involved while switching banks. The banks are now planning to hike up the fees again, but now with the introduction of the new law by the Congress, switching banks will become much simpler as you will get to retain your account number.

Banks are looking at ways and means to make money due to the present economic conditions that are prevailing. Bank of America or BAC as well as other large banks have decided to do away with the fees for just having the debit card, but there are the other fees that are certainly going to make their way in. New set of fees and additional charges are a certainty as banks are looking at ways and means to earn some extra revenue in the present situation. Now, consumers will face higher fees on their checking accounts and out-of-network ATMs. There will be hikes in safe deposit prices and paper checks will also cost much more. Some of the banks like PNC and Chase are also charging customers a fee of $25 for closing accounts.

If you are using a number of services at your bank, you are less likely to make the switch. Although it has been predicted that close to 14% of the customers will be making the switch this year, the figures are expected to vary. Less than 2% of the customers with checking accounts, especially those using online banking, direct deposits, and electronic bill payments actually switch banks every year, when compared to 20% who have just the checking accounts, as per information provided by Celent, which is a financial consulting firm. Over 50% of the customers use direct deposit facility and around 40% make online bill payments according to the global consulting firm, AlixPartners.

Switching banks can be a daunting task as there is a lot of paperwork involved. However, The Freedom and Mobility in Consumer Banking Act will make things easy while closing accounts. Direct deposits will have to be done free of charge for a period of one month after closing the account.